- Microsoft will shut down Skype in May and integrate its services into Microsoft Teams.
- Skype, acquired for $8.5 billion in 2011, revolutionized online communication.
- Growing competition from platforms like Zoom and Slack contributed to its decline.
Microsoft has announced that it will retire Skype in May, officially moving its users to Microsoft Teams. This shift marks the end of an era for Skype, which played a pivotal role in transforming digital communication. Users will be able to log into Teams using their existing Skype credentials as Microsoft consolidates its communication tools, according to AP News.
The Rise of Skype: A Game-Changer in Communication
Founded in 2003 by engineers in Tallinn, Estonia, Skype pioneered internet-based voice and video calling through voice-over-internet-protocol (VOIP) technology. It allowed users to bypass traditional landlines, making communication more accessible and affordable.
“You no longer had to be a senior manager in a Fortune 500 company to have a good quality video call with someone else,” said Barbara Larson, a management professor at Northeastern University who studies virtual and remote work. “It brought a lot of people around the world closer.”
Skype’s impact extended beyond business. It revolutionized personal communication, allowing families, friends, and international teams to connect seamlessly.
Microsoft’s $8.5 Billion Bet on Skype
Microsoft acquired Skype from eBay in 2011 for $8.5 billion, a move aimed at strengthening its position in the online communication market. At the time, Skype had around 170 million users worldwide.
“The Skype brand has become a verb, nearly synonymous with video and voice communications,” said then-Microsoft CEO Steve Ballmer.
However, Microsoft struggled to integrate Skype effectively into its ecosystem, and its popularity gradually faded as new competitors emerged.
The Decline of Skype Amid Rising Competition
Skype was once considered cutting-edge, even being used in 2017 by the Trump administration to take questions from journalists outside the White House press briefing room. However, the same year, Microsoft launched Teams, signaling a shift in focus toward workplace collaboration.
Platforms like Slack and Zoom gained traction, especially during the COVID-19 pandemic, as companies and individuals sought more efficient remote communication tools.
“Higher-quality media can really deepen relationships and make people able to work through complex problems much better,” Larson said. “Suddenly, this was available to anyone with a decent internet connection. And that was the real sort of revolutionary role that Skype had.”
Microsoft is encouraging Skype users to transition to Teams, which offers a more integrated experience for both personal and professional communication. Existing Skype accounts will still be valid for logging into Teams, ensuring a smoother migration.
While Skype’s influence has waned, its legacy in shaping modern communication tools remains undeniable.
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Source: AP News
